Regular Audits and Compliance: City Officials Strengthen Oversight of Homeless Shelter Providers

The city audits its contracted homeless shelter providers regularly to ensure compliance with established service standards. During the recent oversight hearing, officials from the Department of Social Services (DSS) and the Department of Homeless Services (DHS) outlined their approach to contract management and accountability in relation to these providers. As part of their compliance strategy, DSS typically conducts audits every fiscal year, assessing various providers through a range of evaluation strategies including risk assessments and performance reporting (Source: https://youtu.be/Oo8ZET9rUQ4&t=730).

Audits vary in duration depending on the complexity and size of the shelter being evaluated. For instance, large providers may require more extensive audits that take longer to complete compared to smaller ones (Source: https://youtu.be/Oo8ZET9rUQ4&t=1766). From 2022 to 2024, DSS performed fiscal audits for two years and oversaw 186 inspections valued at approximately $350 million (Source: https://youtu.be/Oo8ZET9rUQ4&t=1766).

Non-compliance with service standards can lead to various consequences for shelter providers. These consequences range from corrective action plans to the more serious measure of terminating contracts in cases of serious violations. DSS officials emphasized a preference for remediation and support over punitive actions, seeking rather to enhance providers’ capacities to deliver services effectively (Source: https://youtu.be/Oo8ZET9rUQ4&t=1058). For instance, when financial challenges arise, providers may be subjected to enhanced reviews and more stringent monitoring, alongside guidance from DSS staff who interact regularly with these organizations (Source: https://youtu.be/Oo8ZET9rUQ4&t=325).

The oversight hearing highlighted the need for robust compliance and accountability measures, particularly in light of a report from the Department of Investigation (DOI) that identified significant compliance risks among various service providers, including conflicts of interest and excessive executive compensation (Source: https://youtu.be/Oo8ZET9rUQ4&t=0). As DSS continues to refine its oversight mechanisms, the agency aims to ensure fiscal responsibility and delivery of quality support to individuals experiencing homelessness in New York City (Source: https://youtu.be/Oo8ZET9rUQ4&t=6764).